CBN Asks Banks to Invest More in Cybersecurity to Safeguard Depositors

Central Bank of Nigeria (CBN) has urged banks in the country to make significant investments in cybersecurity to safeguard depositors’ savings from hackers.

Dr. Adetona Adedeji, acting director of Banking Supervision, made this call during a panel discussion on “Fiscal and Monetary Policy Reforms: Removing Barriers to Private Sector Investment” at the ongoing Nigeria Economic Summit in Abuja.

He acknowledged the rapid innovations within the banking sector, particularly concerning electronic banking, and emphasized the need for banks to stay one step ahead of criminals to prevent customers from losing their deposits.

“There has been a lot of innovation in the banking sector today, especially in e-channels,” Dr. Adedeji stated. “Therefore, we require a robust risk management system. We expect every bank to implement a very strong cybersecurity framework.”

He continued, “We want customers to be protected from criminals. These are individuals we have been working hard to convince to deposit their money instead of keeping it under their pillows. We don’t want a situation where, after successfully encouraging them to bank their funds under financial inclusion initiatives, hackers exploit vulnerabilities and steal their money.”

Dr. Adedeji reiterated the importance of establishing secure systems, saying, “We want banks to develop a very robust cybersecurity system that guarantees the safety of customers’ money, allowing them to deposit their funds today, sleep peacefully, and wake up tomorrow to find their money intact.”

Regarding the CBN’s efforts to combat inflation, he noted that while the bank aims to reduce inflation, it remains mindful of the need to keep businesses operational.

“We are focused on targeting inflation through interest rate increases, but we understand the impact this has on businesses,” he explained. “We don’t want to reach a state of hyperinflation. We simply ask for understanding; all the policies the CBN has introduced aim to help mitigate inflation.”

Dr. Adedeji added, “Our current priority is price stability, but we are aware that businesses must continue to function.”

On the foreign exchange policy being implemented by the CBN, he remarked, “Rent seekers are facing challenges, as we strive to achieve equilibrium.” He also highlighted ongoing collaboration with fiscal authorities to address the correlation between FAAC (Federation Accounts Allocation Committee) releases and liquidity at the state level, as well as the unusual demand for foreign exchange that arises each time FAAC distributes monthly revenues to the three tiers of government.